Pump.fun lawsuit reveals founder’s private messages, admits "most users are losing money"

ChainCatcher reports that the law firm Burwick Law has filed amended lawsuits on behalf of retail investors against Pump.fun, Solana Labs, and related executives. Previously, the judge allowed the plaintiffs to submit a second amended complaint, adding 5,000 private messages as new evidence, accusing them of orchestrating a “pump and dump” scheme.

The lawsuit reveals that Alon Cohen, co-founder of Pump.fun, admitted in private messages that most investors on the platform suffered losses, and frankly stated, “We make it easy for ordinary people to trade small-cap tokens with a market cap below $50,000, but this also exposes everyone to extremely low chances of winning, like gambling.” The lawsuit also claims that some crypto KOLs were paid to promote meme coins without disclosing conflicts of interest and were informed of purchase targets in advance.

However, the article points out that much of the evidence in the lawsuit is based on hearsay, lacking concrete proof of direct profits by Pump.fun executives, and remains cautious about the allegations of a “criminal organization.”